Determine the net cost of the call premium

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1. The Swiss franc is selling for $.7681 and the British pound is selling for $1.6581. The cross rate between the franc and the pound is what?

2. Buchanan Corp. is refunding $12 million worth of 10% debt. The corporation's tax rate is 35%. The call premium is 9%. What is the net cost of the call premium?

 

Reference no: EM1353220

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